Author Box
Articles Categories
All Categories
Articles Resources

Study Reveals Least Affordable Cities

February 27, 2012 | Comments: 0 | Views: 107

Every year, a team from New Zealand conducts a comprehensive, global survey of housing affordability. The survey includes dozens of U.S. cities, and takes into account an area's average household income and average housing costs (both rental and purchase prices). The results are released in a report called Demographia.

The main difference between this and other assessments is that the Demographia report uses a very simple equation - average house price divided by average income. Most other assessment tools use an equation that includes mortgage affordability, which varies widely based on interest rates. By keep the equation simple, the Demographia report offers a more realistic view of how home prices and incomes have changed relative to each other.

The team of Wendell Cox and Hugh Pavletich compiled information from hundreds of cities, including 131 in the United States. Of those, 117 were considered affordable, with housing costs being at or below 30 percent of the area median income, which is how the U.S. Department of Housing and Urban Development (HUD) defines "affordable." The study found that, in the most expensive markets, housing costs were several times higher than the affordable threshold set by HUD.

A total of 14 U.S. housing markets were deemed "severely unaffordable," including: Boston, MA; New York, NY; Boulder, CO; and several cities in California. These results surprised few people, especially those living in and around the severely unaffordable cities. Income in many of these cities has either stagnated or fallen, while housing has become increasingly scarce, causing prices to go up. The result is that, even in the current economic climate where housing prices in general have fallen sharply, affordable housing remains out of reach for many Americans.

According to the study, the most affordable markets are in the industrial heartland and include several cities in Michigan and Ohio. This was expected by the study's authors, who acknowledge that home prices fell significantly in these areas while unemployment rose as a result of the financial crisis and economic recession.

The Demographia study reflects a persistent need for affordable housing all across the United States. Not only does it serve as an important wake up call to those who say we no longer need to invest in affordable housing, but information from the study can help affordable housing developers make a strong case for their projects, especially in the areas where low- and moderate-income housing is most needed.

Want to get a free program guide of Sean Carpenter's top 8 favorite government programs for real estate developers and investors? Request your free program guide today at:

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Affordable Housing


Housing Costs


Sean Carpenter


Least Affordable Cities


Housing Needs

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 258

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 211

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 241

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 263

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 242

One can say Coronado is an amenity of downtown San Diego. We regularly chat about Coronado highlighting its proximity to downtown as an enjoyable day out.

By: Margaret A Irvingl Real Estate > Homesl April 07, 2012 lViews: 173

There are a number of significant advantages and benefits to buying a new construction house versus a pre-owned one, and new homes can be a great value in today's housing market. This article

By: Jim Dunlap, Jrl Real Estate > Homesl April 06, 2012 lViews: 163

It's been a long time coming years upon years of countless foreclosures, short sales and distressed properties have hit the Real Estate market but believe it or not, we are finally starting to see

By: Katie D. Creekl Real Estate > Homesl April 05, 2012 lViews: 154

Florida golf course homes enjoy the best of all worlds; easy access to championship golf, and a wide variety of other amenities. If you're looking for a luxury home in Florida, several premier

By: Charles Posessl Real Estate > Homesl April 04, 2012 lViews: 181

For many people, moving into a first place is more about the acquired freedom than it is about the structure. Whether it's a rented room in another's home, a one-room efficiency or an actual

By: Al Zobecl Real Estate > Homesl April 03, 2012 lViews: 177

You will feel difficulty in selling a mobile home when you are not having the right preparation and when you are not following proper channels. These mobile houses are ideal for people who want to

By: Rebecca K Leel Real Estate > Homesl April 03, 2012 lViews: 148

Despite lower home prices, the availability of affordable housing remains a concern across the country. While it's true that there are a lot of homes on the market, they are still out of reach for

By: Sean M Carpenterl Real Estate > Commercial Constructionl February 23, 2012 lViews: 125

The 2012 budget is out for the U.S. Department of Housing and Urban Development's community development programs. Funding levels have been released for Community Development Block Grants (CDBG), HOME

By: Sean M Carpenterl Real Estate > Commercial Constructionl February 21, 2012 lViews: 117